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Iron Mountain (IRM): Growth in the paper trail

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Safe storage and document management is a prime concern for any company. One of the most highly recognized and consulted experts in the business is headquartered in Boston.

Iron Mountain (NYSE: IRM) is one of the largest information storage firms in the world, offering comprehensive records management, data protection, regulatory compliance and disaster recovery services. The company handles paper documents, computer records, microfilms, tapes, X-rays and blueprints for more than 100,000 corporate clients throughout North America, Europe, Latin America and the Asia Pacific.

The firm surprised the Street late last month, when it reported Q3 EPS of 25 cents and revenues of $702 million. Analysts had been expecting 18 cents and $687.2 million. Management also guided FY07 revenues to $2.70-$2.72 billion ($2.69B consensus) and announced the acquisition of electronic discovery specialist Stratify. The news popped the shares out of an October "cup" into the November "handle" of a Cup & Handle formation. The price is now showing signs of completing the pattern with a bullish rise from the right-hand side of the "handle."

Brokers recommend the issue with four "strong buys," two "buys," three "holds" and a single "sell." Analysts expect a 19% average annual growth rate through the next five years. The IRM Price to Sales ratio (2.74), Price to Book ratio (4.15) and EPS Growth rate (92.31%), compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 95% of the outstanding shares. Over the past 52 weeks, the stock has traded between $25.05 and $38.16. A stop-loss of $31 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.

Symbol Lookup
IndexesChangePrice
DJIA-223.328,280.74
NASDAQ0.001,796.52
S&P 5000.00896.42

Last updated: July 06, 2009: 09:32 AM

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